Majescor and De Beers form joint venture in Madagascar

Majescor Resources and De Beers have entered into a joint venture to explore for diamonds in northern and central Madagascar.

As part of the joint venture agreement, De Beers will contribute its extensive database and Majescor will contribute some of its land holdings it has in Madagascar. According to the terms of the agreement, Majescor is to secure and keep identified area of high interest in 2004 and 2005. During this period, both companies will jointly explore the area on a 50-50 basis.

In 2003 and 2004, De Beers collected and processed a total of 102 samples from selected areas of Madagascar. The company spent about $800,000 on the exploration program and on the evaluation of samples. The company’s analysis led to the recovery of 4,378 visually positive kimberlitic indicators, some of which have been confirmed, through micro probing, as having a kimberlitic origin.

Earlier this year, Majescor acquired a large land package of approximately 7,700 square-miles in areas either cratonic or identified as being prospective for diamond exploration based on the discovery of kimberlitic indicator minerals in the past. Majescor said a sampling of ground has yielded encouraging results.